Letter to Biden Administration on Crowdfunding Limit Updates

President Biden released a regulatory freeze notice last week that may stop the new Regulation Crowdfunding (Reg CF) and Regulation A (Reg A) rules from going into effect March 15, 2021.

These are the rules that, among other adopted exempt offering framework updates, will change the cap for Reg CF from $1M to $5M and for Reg A from $50M to $75M.

View the letter to President Biden here: CfPA letter to Biden Administration – 01/28/2021


To show your support for the recently adopted SEC crowdfunding changes:

  1. Sign your name and company in support of the letter here

Many of the adopted updates will help get Main Street back to work and should not be delayed.

Please let us know if we can include you or your organization as a supporter of this initiative by signing the form here.

If you’d like to take part in other meaningful discussions, please consider becoming a CfPA member today and ask about joining our Legislative and Regulatory Affairs (LRA) committee.

SEC Announces Amendments to Crowdfunding Regulations

New York, NY, November 16, 2020 – The Crowdfunding Professional Association (CfPA) announced today that the U.S. Securities and Exchange Commission (SEC) has amended rules governing crowdfunding under both Regulation A and Regulation Crowdfunding. The CfPA has provided guidance to the SEC regarding these changes since before the bipartisan passage of the governing JOBS Act in 2012.

The changes are intended to make investment crowdfunding rules more effective and accessible for both entrepreneurial issuers and investors. By raising the limits on investments, more people will be allowed to invest more money in these startups. In parallel, the higher limits on fundraising will increase small businesses’ ability to raise capital under these rules.

Some of the most important rule amendments are summarized below:

Regulation Crowdfunding:

  • raise the offering limit under Regulation Crowdfunding from $1.07 million to $5 million;
  • amend the investment limits for investors in Regulation Crowdfunding offerings by:
    • removing investment limits for accredited investors; and
    • using the greater of their annual income or net worth when calculating the investment limits for non-accredited investors; 
  • extend for 18 months the existing temporary relief providing an exemption from certain Regulation Crowdfunding financial statement review requirements for issuers raising $250,000 or less; 
  • permit Regulation Crowdfunding issuers to “test-the-waters” prior to filing an offering document with the Commission in a manner similar to current Regulation A.

Regulation A:

  • raise the maximum offering amount under Tier 2 of Regulation A from $50 million to $75 million;
  • raise the maximum offering amount for secondary sales under Tier 2 of Regulation A from $15 million to $22.5 million;
  • simplify certain requirements for Regulation A offerings and establish greater consistency between Regulation A and registered offerings.

Rule 504 of Regulation D has also been amended to increase the cap on offerings from $5 to $10 million. 

Furthermore, the final rule will exempt certain “demo day” communications from being deemed a general solicitation or general advertising.

The final rules are effective 60 days after publication to the federal register. The SEC’s final rule can be found here.

The CfPA is committed to continuing efforts to advocate for amendments that improve access to capital, to democratize investment opportunities traditionally exclusive to wealthy investors and to protect investors.

About CfPA:

The Crowdfunding Professional Association (CfPA) is a 501(c)(6) nonprofit trade group established shortly after the signing of the Jumpstart Our Business Startup Act (“JOBS Act”) on April 5, 2012. The CfPA is dedicated to equitably representing the Crowdfunding industry and supporting the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) by providing entrepreneurs, investors and industry professionals with education, networking and tools all necessary to cultivate a balanced and healthy ecosystem able to help accelerate capital formation and ensure investor protection.



Crowdfunding Professional Association
Brian Belley, Secretary

CfPA & OTC Markets Group host Fireside Chat

This discussion covers many subjects relevant to those interested in Crowdfunding, AltFin and FinTech, including updates on regulatory movements at the SEC and on The Hill.

CfPA president keynotes 7th annual Crowd Funding Institute of Australia summit

A warm reception and vibrant discussion at CfPA’s sister association down under. The event was a high-energy, content-rich and agenda-packed day tailored to professional of people movers across all forms of digital fundraising.

CfPA FREE Forum Nov 16 on W. 62nd

Full details here

CfPA FREE Forum Nov 16 on W. 62nd

CfPA FREE Forum Nov 16 on W. 62nd

CfPA partners with Fordham University and Computershare for FREE forum: “The State of Crowdfinance” Nov. 16th 5;30pm. Full details here









More on CfPA ECO here

ECOCfPA Launches Knowledge-Sharing Platform with Brainsy.com to make Crowdfunding expertise accessible to entrepreneurs, investors and general public. More on CfPA ECO here.


SummitThe CfPA 4th Annual Crowdfinance Summit was timely and informative only a few months into the new administration with all JOBS Act Rules – Reg A+, Reg CF and Title II – in full effect. The CfPA Annual Summit is always unique, as the only conference for the industry by the industry with the participation of alternative finance luminaries, an esteemed Board of Directors, and leaders from every segment of the industry. Visit the page here.


Letters To The SEC

CfPA BOD Keynote at World’s Largest CrowdFunding Summit

chinaCfPA Board of Directors members Alon Hillel-Tuch, Jordan Fishfeld, and Scott McIntyre hosted at the world’s largest CrowdFunding summit. The October 2015 event in Guiyang, China expected 8000 attendees but received over 13,000. For more information, visit www.GlobalCFC.cn.

Gate Global Impact Partners With U.N. To Capitalize Social Entrepreneurs

Gate Global Impact announced at the recent United Nations Global Compact Leaders Summit a plan to feature select companies from the U.N.’s soon-to-be-launched Social Enterprise Action Hub on the Gate Global Impact GATEWAY Platform, a crowdfunding platform for social entrepreneurs to pitch impact investors…

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